Amazon to pay $1.5 billion to Prime subscribers in FTC settlement
The Federal Trade Commission pursued Amazon for its handling of Prime subscriptions, alleging the company used manipulative design tactics that made cancellation difficult, despite easy sign-up options.
“The company made use of manipulative dark patterns.”
Although Amazon did not admit wrongdoing, it agreed to a $2.5 billion settlement with the FTC. Of this amount, $1 billion will go to the government, while $1.5 billion will be distributed as consumer relief in the form of refunds.
Compensation Details
- Eligible customers can receive refunds up to $51.
- Payments are expected by December 25, 2025.
- Eligibility applies to those who enrolled in Prime between June 23, 2019, and June 23, 2025, via specific sign-up flows or who unsuccessfully tried to cancel during that time.
Eligibility Criteria
Consumers qualify if they registered through one of the disputed enrollment paths, such as the shipping options page during checkout, or if they attempted but failed to cancel within the specified dates.
Summary
Amazon’s settlement marks a major consumer victory, returning $1.5 billion to Prime users affected by its complex cancellation process.
Author’s summary: A $2.5 billion FTC settlement compels Amazon to fund $1.5 billion in refunds to Prime members frustrated by deceptive cancellation flows.
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